WASHINGTON, Nov. 8 /PRNewswire-USNewswire/ -- America's leading catastrophe response and recovery experts today hailed the overwhelming passage of the Homeowners' Defense Act of 2007 (H.R. 3355) that would help ensure that individuals and communities destroyed by natural catastrophes have the resources necessary to repair, rebuild and recover in the aftermath of massive hurricanes, earthquakes or other natural events.
"Passage of this bill, coupled with the recent introduction of its Senate companion bill by Senators Clinton and Nelson, are major steps toward the establishment of a comprehensive and integrated state and federal, public and private national program to improve the way that American families are prepared for and protected from massive natural catastrophes," said James Lee Witt, former director of the Federal Emergency Management Agency and co-chair of ProtectingAmerica.org.
"This bill responds to the looming threats that our families and our nation face from hurricanes along the Gulf and Atlantic coasts as well as from a replay of the devastating earthquakes that have rocked the Midwest and the West Coast," Witt said.
The potential for massive natural catastrophes in America is enormous. Nearly 6 in 10 American families now reside in areas that have been rocked by earthquakes or stuck by major hurricanes.
"Few places in America are immune from natural catastrophe. The largest earthquakes to hit the lower 48 states shook the ground in the early 1800's from Mississippi to Michigan and from Pennsylvania to Nebraska. Devastating hurricanes ripped along the mid-Atlantic coast throughout the 20th century and we are still recovering from the storms that plagued our southern states in the past few years," said Admiral James M. Loy, former deputy secretary of the US Department of Homeland Security and also a co-chair of ProtectingAmerica.org.
"Obviously, the wildfires that blazed across southern California underscore just how vulnerable that area is to catastrophe," Loy said.
"Passage of this bill today is a credit to the leadership of Speaker Pelosi and House Financial Services Committee Chairman Barney Frank and a clear signal that the House of Representatives recognizes the urgent need to protect our families before the next catastrophe strikes," he added.
HR3355 passed the House today by a vote of 258-155. The bill was sponsored by Florida Reps Ron Klein, Tim Mahoney, Ginny Brown-Waite and nearly 4 dozen cosponsors from around the country.
"We are hopeful that the overwhelming support shown for this bill in the House will compel action by the Senate as quickly as possible," Witt said.
ProtectingAmerica.org has been advocating for the creation of state and national catastrophe protection and preparation programs since the summer of 2005. State catastrophe funds are currently being considered in Massachusetts, New York, New Jersey, Texas and Louisiana.
The programs supported by ProtectingAmerica.org rely on private insurance company deposits to create a mechanism to serve as a financial backstop that would stand behind, but not replace, the traditional insurance and reinsurance industries. These state funds would accept deposits that would grow on a tax- exempt basis and could only be tapped in the event of a massive catastrophe. A designated portion of the investment income of the state funds would be required to be set aside on an annual basis to help fund first responder programs, mitigation efforts and homeowner education programs that are all designed to reduce the loss of life and property resulting from catastrophes.
ProtectingAmerica.org is a national, non-profit organization whose members include the American Red Cross, numerous municipalities, insurers like Allstate and State Farm, first responder organizations, small businesses, Fortune 500 companies and more than 15,000 individual members from across the country. The primary goals of ProtectingAmerica.org are to improve the financial protection for consumers by establishing catastrophe backstops at the state and national level to provide recovery and rebuilding funds in the case of a major natural catastrophe and to augment first responder funding, improve homeowner education and strengthen mitigation programs.
ProtectingAmerica.org
